Marketplace began by purchasing a basic business database from Info-USA.com. The staff then created a list of businesses in Lawrence; all businesses got a free posting consisting of basic information plus store hours and a picture of the business. Then the companies were contacted with the option of creating more detailed listings: for $75 a month companies can have more photos and biographical information. For $200 a month the businesses can add multimedia capabilities, a calendar function, a product catalog, online coupons, etc.

Listing companies for free and not pricing too aggressively those companies wishing to create more elaborate listings is very important to advertising director Al Bonner: “People won't use you if they don't feel they can find every business in the market”.

In other words, the site needs to have enough businesses that people in the community will be interested in using the site, as Bonner mentions. And, to make any money, the site must attract enough users that the businesses are willing to invest in the more sophisticated listings.

This revenue model is quite interesting for newspapers, particularly those that are attempting to focus on local news.

Source: inlandpress.org through ifra Executive News Service